Digital Asset Funds Regain Momentum After $7B Outflows Earlier This Year

Crypto Inflows Surge, Wiping Out $7B in Earlier Losses

Digital asset investment products brought in $785 million in inflows last week, signaling a full recovery from the nearly $7 billion in outflows recorded during February and March’s market downturn. Year-to-date inflows now stand at $7.5 billion, according to CoinShares.

The bulk of last week’s inflows came from the U.S., which contributed $681 million. Germany followed with $86.3 million, and Hong Kong posted $24.2 million — its strongest showing since November 2024.

Bitcoin (BTC) products led the way with $557 million in inflows, although that marked a slight decrease from the prior week. Despite a hawkish Federal Reserve, investor demand for BTC exposure remains robust — especially through U.S.-listed spot ETFs. After outflows of $3.56 billion in February and $767 million in March, these funds have now seen nearly $5.6 billion in cumulative inflows across April and May, based on data from SoSoValue.

Short bitcoin products also saw continued interest, logging a fourth consecutive week of inflows, reflecting ongoing caution or downside hedging.

On the altcoin front, ether (ETH) products stood out with $205 million in inflows — the highest since March — likely driven by renewed optimism following the Pectra upgrade.

Solana (SOL) was the only major asset to register outflows, losing just under $1 million for the week.